RCS - Beowulf Mining PLC - Kallak Iron Ore Project Summary

Beowulf MiningAnnouncement

14/05/2025 07:00

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RNS Number : 5322I  Beowulf Mining PLC  14 May 2025

 

 

 

14 May 2025

 

Beowulf Mining Plc

 

("Beowulf" or the "Company")

 

Kallak Iron Ore Project Summary

 

Beowulf (AIM: BEM; Spotlight: BEO) and its wholly owned Swedish
subsidiary Jokkmokk Iron Mines AB ("Jokkmokk Iron") are pleased to provide a
summary on the status of the Kallak Iron Ore Project ("Kallak" or "the
Project"). A video describing the technical developments of the project to
date is also available at
https://beowulfmining.com/kallak-technical-summary-presentation-april-2025/
(https://beowulfmining.com/kallak-technical-summary-presentation-april-2025/)
.

 

Background

 

Over the last eighteen months, Jokkmokk Iron's focus has been on derisking the
Project from multiple perspectives. Key areas of focus include local
stakeholder engagement, with more energy dedicated to dialogue with
landowners, local residents, Sámi communities, and the municipality. Another
top priority has been advancing environmental work to position the Company for
the submission of a high-quality, well-supported environmental permit
application. Technical studies required to complete the Pre-Feasibility Study
("PFS") and critical to derisking the Project from social, environmental,
operational and financial perspectives, have included metallurgical testing,
transportation, and waste management.

 

Introduction to Kallak

 

Kallak is located within a vast natural landscape which is utilised by Sámi
communities, residents, and tourists for a range of activities including
reindeer grazing and migration, hunting and fishing, and recreation. It also
lies in the heart of Swedish hydropower production, being a neighbour to one
of the most hydropower-regulated rivers in the world. Kallak hosts one of the
largest untapped iron ore deposits in Europe, with the potential to supply
regional and global green steel production with market-leading high-grade,
low-impurity magnetite concentrate. Given its physical properties, location,
and the availability of existing and emerging technologies, Kallak has the
potential to achieve a record low climate footprint and provide the product
highly desired to decarbonise the steel industry.

 

Over the last year and a half, a new project delivery team has been assembled
to develop the Kallak project. Ed Bowie, appointed as CEO of Beowulf Mining in
2023, holds over 20 years of experience in the natural resources sector and
has worked in technical, corporate, advisory and fund management roles across
a broad range of commodities and jurisdictions. Ed has worked diligently to
restructure the business and to map out the tools necessary to manage major
risks for the efficient and effective development of the Kallak project.

 

A year ago, Dmytro Siergieiev, project director at Jokkmokk Iron, joined the
team. Dmytro's solid environmental background, people skills, local
perspectives and critical experience within the Swedish permitting process for
mine sites have contributed to the transformation of the development of the
Kallak project.

 

Direct local context has been secured by Morgan Snell, Jokkmokk Iron's local
public affairs manager. Morgan grew up on the outskirts of the project area,
has been with the company for over 11 years, and continues to maintain
intimate ties to the community to ensure the Company maintains transparent and
open communications with all local stakeholders.

 

The project management team is supported by a range of experts focused on
specific disciplines, with strong track records in community relations,
reindeer herding, transportation and logistics, metallurgy, tailings storage
facility design, biodiversity, hydrology and water management, and
Environmental Impact Assessments ("EIAs"). To date, Beowulf has developed a
cohesive delivery team of well-known and highly-respected international and
Swedish consulting companies and individuals, working collaboratively to
ensure the optimal development of the Kallak project.

 

Community relations

 

Acknowledging that Kallak is unique and viewing the project through the lens
of the local community and stakeholders has given the Company additional
motivation to modify designs, adjust boundaries, challenge preconceptions and
ultimately seek the optimal solution to each issue faced. Dmytro and Morgan
engage in direct contact with local landowners, residents, communities and
business representatives, and aim to be flexible in order to meet the specific
stakeholder needs.

 

Morgan Snell, local public affairs manager, commented; "We purchase fika
(Swedish cake) from a local café and meet people around a cup of coffee or
walk with them in the forest on their property to discuss major concerns and
answer all possible questions. It seems that this not only gives us valuable
input, but also provides a point of contact for local communities on their
terms."

 

Dmytro Siergieiev, Kallak Project Director, adds; "On selected occasions, we
organise community meetings where we spend the entire evening with local
villagers talking about the project, technical details and potential adverse
impacts and seeking to respond to concerns and collect feedback and
suggestions. Local stakeholders will be the most affected groups, and it is
our key priority to make sure we are in a position to identify, quantify and
minimise potential impacts. This is best achieved through face-to-face
dialogue."

 

The Kallak project is located in a region that is critical to Sámi culture
and the immediate area surrounding the project is used year-round for reindeer
herding. Recognising the importance of the land in the vicinity of the project
is paramount to achieving a long-term sustainable operation with minimal
impact.

 

Anders Forsgren, CEO of Landman Consulting, states; "Understanding Sámi
villages' departure points, reindeer grazing cycles, and land use across
different seasons, together with building trustworthy relationships, is the
foundation of a well-informed dialogue and, in extension, a well-supported
reindeer herding impact assessment."

 

Anders is a land-owner in his own right, and an independent consultant with
over 30 years' experience in assessments of mining impacts on Sámi
communities.

 

 

 

 

Pre-Feasibility Study

 

Technical development of the project has made substantial strides over the
past year. Metallurgical testing, led by Bo Arvidsson, a metallurgist with
over 50 years' of experience in iron ore processing, demonstrated the ability
to upgrade iron ore from Kallak to a world-class magnetite concentrate.
Moreover, due to the ore's natural composition, this is achieved purely
through a physical beneficiation process. Multiple steps of magnetic
separation, including a final stage of high-frequency electro-magnetic
oscillation, allow the Company to produce a high-grade, low-impurity product
whilst avoiding the use of flotation and the associated chemicals. Design work
for the beneficiation plant was provided by Zenito Limited, a highly
specialised engineering consultant with extensive experience in iron ore
processing facilities and was finalised along with infrastructure requirements
and design for the project as a whole.

 

Figure 1. Side view of the planned open pit at Kallak with moraine stockpile
(back) and ROM pad and crusher (right).

 

The development of the mine requires the stripping of moraine overburden which
is stockpiled to the west of the open pit. The Kallak orebody outcrops at
surface with a low life-of-mine strip ratio of 0.5 : 1. Waste is utilised in
construction or transported to the waste rock dump ("WRD") and the ore is
transported to the run-of-mine ("ROM") pad. From the ROM pad, ore is crushed
and transported by conveyer to a crushed ore stockpile.

 

The next stage in the process involves milling the crushed ore in a
semi-autogenous (SAG) mill to produce a fine powder prior to magnetic
separation in a series of Wet Low Intensity Magnetic Separators (WLIMS). A
single concentrate is produced with a grade of 68.8% iron ("Fe") content which
is then further upgraded with the non-chemical high-frequency electro-magnetic
separation using LJC Technology to over 70% Fe and less than 2.5% combined
silica and alumina.

 

This wet concentrate can then either be pumped in slurry form to the railhead
or dried with filter presses for alternative transportation. The waste stream
from the processing plant, consisting of fine-grained material or tailings, is
pumped to the tailings storage facility ("TSF").

 

Waste management studies were undertaken by Geosyntec Consultants, an
international consulting company with an excellent track record in tailings
management and storage facility design in Sweden and worldwide. The team's
expertise and dedication has enabled the Company to produce a robust design
for the embankment, deposition and construction strategies that fulfils both
Swedish and international requirements. Safety, and thus robust design, is the
top priority for Beowulf and Jokkmokk Iron. Therefore, it was crucial to
achieve a design aligned with best industry practices, adapted to local
conditions, and optimised for cost-effective construction and maintenance.

 

Bernardo Meneses, principal design engineer at Geosyntec, says: "Our goal has
always been to challenge old knowledge and bring in successful solutions
trialled at other sites around the world, which was possible due to the
inclusive climate of the project. It has been a pleasure working on the Kallak
project with the team around it, and I am looking forward to taking the
current design into the next phase.".

 

Figure 2. Plan view of the waste rock dump and the tailings storage facility
with associated water ponds.

 

Environmental permitting

 

The Kallak project encompasses over two dozen workstreams delivered by various
consultants, all contributing to the environmental permit application. The
work began with the collection of baseline data, some of which requires a
minimum of two years of records in compliance with Swedish and EU regulation.
This work also builds on previous information collected for a preliminary
impact assessment completed for the exploitation concession application in
2013. Last year, the remaining work was streamlined, and to date, we have
completed assessments of vibrations, rock fall, noise, dust impacts, hydraulic
testing, and groundwater impact. We are well underway with waste
characterisation and recipient impact assessment. Additional work has been
initiated to conduct nature and cultural heritage inventories along the
transport corridor, which was until recently an undefined scope due to the
transport solution not being finalised.

 

Karin Törnblom, team leader at Bergab and EIA lead for the Kallak project,
comments; "Mining operations are complex and encompass all possible
disciplines when it comes to environmental impact assessment. Additionally,
any permitting process risks facing shifting legal requirements, industry
practices and recent court decisions along the way. We at Bergab are delighted
to be supporting Jokkmokk Iron in the Kallak project, which has assembled an
extremely experienced and dedicated project delivery team.".

 

Dmytro Siergieiev, Kallak project director, added; "I am very pleased to have
Bergab's team on board - they demonstrated fantastic devotion through the
planning and ramp-up phase, consultation process, and ongoing review of
environmental studies. I am looking forward to pulling together a high-quality
environmental permit application together with Karin, her team and the rest of
the project delivery team."

 

Transportation

 

Kallak is strategically located near a well-established iron ore and steel
cluster in Northern Sweden, including LKAB's operations in Malmberget,
Svappavaara, and Kiruna; Boliden's Aitik mine near Gällivare; Kaunis Iron's
operation in Kaunisvaara outside of Pajala and reloading station in
Pitkäjärvi outside of Svappavaara; SSAB's steel plant in Luleå; and
emerging projects such as the Viscaria mining operation in Kiruna; Stegra's
planned green steel facility in Boden; the Hybrit green steel development in
Luleå; a potential pellet plant in Narvik; and ongoing expansions at all
operational facilities mentioned above.

 

Jokkmokk Iron will produce a fine-grained concentrate that needs to be
converted into pellets prior to use in steel making. Currently there are no
independent pellet plants within the Nordic region although Stegra and Kaunis
Iron have announced preliminary plans to build a pellet plant in Narvik.  At
present, the Middle East represents the largest market for Kallak's
anticipated product. In order to access this and other international markets,
the magnetite concentrate from Kallak needs to be transported to a port.
Several options were investigated, and the Kallak team visited ports in
Luleå, Piteå, Skellefteå, and Umeå in Sweden's Bothnian Bay, and Narvik on
the North Sea coast in Norway. As an ice-free and deepwater port capable of
receiving capsize vessels and given its long history of iron ore handling and
shipping, the port of Narvik is the company's preferred option at this stage.

 

Figure 3. Preferred transport route from the mine site at Kallak to the port.

 

Jokkmokk Iron's contribution to the logistics network in Northern Sweden would
be up to 2.8 million tonnes ("Mt") of magnetite concentrate per year, which is
slightly larger than Kaunis Iron's current production rate at the Kaunisvaara
Mine, six times that of Viscaria's planned operation outside of Kiruna, and
just over 10% of LKAB's current transport volumes. All these volumes rely on
the Malmbanan (or Ore Railway). The railway infrastructure between Gällivare
and Riksgränsen on the Swedish border is receiving increasing attention from
the Swedish government, and it is widely acknowledged that more needs to be
done to secure future logistics requirements. Jokkmokk Iron's transport
requirements are already considered in modelling future capacity requirements
on the Malmbanan. Prior to reaching the Malmbanan, the project intends to
utilise the Inlandsbanan (railway) between Jokkmokk and Gällivare. The
Inlandsbanan will require some upgrading, and the Company is engaged in
dialogue with both the Swedish Transport Administration and the managing
entity, Inlandsbanan AB, to map and prioritise necessary upgrades along this
critical route.

 

A major concern of local stakeholders, raised through the public consultation
process, is the transport between the mine site at Kallak and the railhead
outside of Vaikijaur, north of Jokkmokk. Historically, multiple options were
suggested, such as building a designated rail track, trucking, conveyor belt,
or pipeline.

 

A railway requires by far the largest investment, cuts through pristine
landscapes, and involves the longest permitting and construction process.

 

The trucking option has historically been considered the only viable option
due to its attractive capital cost and clear implementation path based on
recent regional experience with similar supply chains. This option would
require a fleet of 90-tonne trucks for efficient material movement and up to
135 movements a day in each direction. This equates to a truck passing in each
direction along the route every six minutes for 20-hours per day.
Additionally, a complete upgrade of the road with a new superstructure and
four layers of tarmac would need to be built, which requires time for
planning, investment decisions from the Swedish Transport Administration,
permitting, and construction. A material portion of the investment and
maintenance cost for this road upgrade would need to be carried by the
Company. Emerging technology allows for electric fleet operation based on the
project requirements and simulations by several suppliers demonstrated
efficient material movement between the mine site and the terminal outside of
Vaikijaur. This solution has, however, substantial implications for local
reindeer herding, residents, tourism, and road safety, and while it provides
attractive capital expenditures, it carries the highest operating costs of all
options considered.

 

A conveyor belt would require the clearing a 40 kilometre ("km") long corridor
that, in most sections, cannot be adjacent to existing infrastructure and
would therefore need a dedicated service road. Along with loss of, and impact
on nature, water rights issues, and extensive capital expenditures, a conveyor
would require active inspection and maintenance. The construction would be
almost two meters high, including foundations and cover and would therefore
present a barrier to the free passage of reindeer and other animals.

 

The preferred option of a pipeline offers significant benefits over these
alternatives. Instead of dewatering the concentrate at the plant site, wet
concentrate, further adjusted to the required solid ratio, is pumped using
positive displacement or centrifugal pumps through a pipe to the railhead. The
filter presses intended to dewater the concentrate would be moved from the
mill to a dewatering plant at the railhead. The concentrate is dewatered to
the target 7-8% moisture, shifted by conveyor belt into a weatherproof storage
facility prior to loading onto trains. The filtrate formed as a result of
dewatering is collected and pumped back to the mill in a dedicated return
water pipeline where it is recirculated as process water. In this way, all
process water is reused, any potential magnetite loss at the dewatering
facility is recirculated back to the beneficiation plant, no water treatment
plant is required at the railhead and environmental risks are minimised. The
terrain between the mine site and the railhead is downhill for magnetite
concentrate and uphill for return water. The pipeline diameter may vary in the
range of c.200-300 millimetres and will be determined more precisely in the
next engineering phase together with other design criteria such as pipeline
material and wall thickness, liner requirements, corrosion protection,
installation depth and heat tracing, instrumentation and monitoring and the
construction approach and schedule. This option provides the ultimate
transport solution for the first 43 km between the mine and the railhead with
major advantages including low or no impact on reindeer herding, water and the
natural environment, noise and dust issues, and is safe and reliable. Although
there will be an increased initial capital expenditure requirement for the
installation of the pipeline, it has the lowest operating costs of all the
options considered making the project more robust to lower commodity prices
and the preliminary studies undertaken suggest it is value accretive to the
project.

 

Figure 4. Example of pipeline installation in cold climate.

 

Based on the above, a pipeline to transport magnetite concentrate from Kallak
to the railhead outside of Vaikijaur is the Company's preferred option.
Further, the Company has received positive responses and support from local
and regional stakeholders, industry colleagues, and engaged authorities. It is
the Company's goal to optimise the technical setup, construction schedule, and
capital costs of the pipeline, and incorporate this option into the permit
application and ongoing pre-feasibility work.

 

Table 1. Preliminary assessment of major transport alternatives between the
mine site at Kallak and the railhead on Inlandsbanan outside of Vaikijaur.

 

 

Other stakeholder engagement

 

Jokkmokk Iron continues to engage with all relevant authorities to inform them
about project development plans and discuss possible ways forward to ensure
the project is well-positioned prior to submitting the environmental permit
application. The Company is grateful for the time and support given so far and
looks forward to further cooperation. Beowulf and Jokkmokk Iron's objective is
to work towards agreed milestones and maintain timelines to enable swift and
efficient handling of the application once submitted.

 

The Company's engagement also involves representatives of political parties,
governmental agencies, municipalities, and industry partners, focusing on
transparent dialogue, permitting and project development, future cooperation,
and product offtake.

 

Next steps

 

The focus of activity at Kallak over the coming months, and subject to the
availability of capital, is to submit the environmental permit application and
complete the PFS.  Additional technical and environmental studies are
required to confirm the viability of the pipeline transport option as
discussed above. Further environmental workstreams that are yet to be
completed include the Reindeer Herding Analysis, World Heritage Impact
Assessment, Social Impact Assessment and ecological compensation. These
studies are required for the submission of the environmental permit
application and will be advanced over the coming months.

 

Approximately 80% of the Kallak Mineral Resource is categorised as higher
confidence Measured and Indicated categories (16 Mt grading 33.6% total iron
("Fe(total)") of Measured, and 95 Mt grading 27.0% Fe(total) in Indicated(( 1 
(#_ftn1) ))). However, there is also a minor portion in the Inferred category
(25 Mt grading 28.3% Fe(total)) including some areas close to surface and will
therefore form part of the mine inventory in the earlier years of the mine
life. This material needs to be converted into the Measured and/or Indicated
categories in order that it can be included in the Mineral Reserve and mine
schedule and therefore a limited drilling programme is planned. When this
drilling and sampling has been completed, the Mineral Resource estimate will
be updated and from that the Mineral Reserve and mine plan will be generated.
The final stage of the PFS will involve estimating the overall capital and
operating costs, building the financial model and finalising the report.

 

The lead consultant for the Pre-Feasibility Study is SLR Consulting. Ben
Lepley, PFS lead for SLR Consulting, notes; "The project has progressed
significantly, and once the infill drilling is completed, we are ready to
update the Mineral Resource and Reserve estimates, mine design and mine
schedule, which we believe will not differ materially from that currently
assumed due to the current level of confidence in the estimates. Following
this, the economic analysis of the project will be completed, and the final
report will be pulled together for delivery to Jokkmokk Iron."

 

Further activities

 

In addition to the activities directly related to the development of Kallak,
the Company is involved in a number of other initiatives:

-      Research projects

o  Kallak has been a focus of debate and discussion for a long time. Over the
past year, interest has rekindled, and we are pleased to see public interest
from students, communities, researchers, suppliers, and politicians.

o  Several research applications are underway, with Kallak serving as a case
study for topics in both social (e.g. symbiosis between industry and society)
and technical (e.g. novel transportation solutions for bulk commodities in
cold climates) fields.

-      Web site

o  An updated web page for Jokkmokk Iron Mines (https://jokkmokkiron.se
(https://jokkmokkiron.se) ) was launched to meet the rising demand from local
communities for regular updates and to provide a platform to collect insights,
questions, and concerns, ensuring we are in a position to address them.

-      Data collection

o  Morgan has completed a course in environmental sampling, enabling the
company to conduct most of the environmental sampling in-house. This allows
Beowulf to better manage and engage with data while also reducing associated
running costs.

 

 

 

 

 

Permitting update

 

On 9 April 2025, the Mining Inspectorate approved the award of exploration
license Kallak nr 102 to Jokkmokk Iron. The licence is a new licence covering
the area of the previous exploration licence, Parkijaure nr 2, held by the
Company.

 

The Kallak nr 102 exploration licence is situated immediately to the south of
the Kallak nr 101 exploration licence awarded in October 2023 which itself
surrounds the Kallak exploitation concession, Kallak K nr 1, awarded in March
2022.

 

The Kallak nr 102 exploration licence area includes part of the Kallak
South-North deposit which contains total resources of 21 Mt at 26.9% Fe in
Indicated category and 6 Mt at 23.4% Fe in Inferred category as well as the
Kallak South-South deposit, which hosts 8 Mt at 26.1% Fe in Inferred category.
The Kallak South deposits, in combination with the independently estimated
exploration target of 25-75 Mt at 20-30% Fe, have the potential to add a
number of years to the Kallak mine life.

 

The exploration licence was issued with permit identification number 2025:38
according to the Minerals Act (1991:45) by the Mining Inspectorate of Sweden
("Bergsstaten"). The exploration permit covers an area of 285.10 hectares,
remains valid from 9 April 2025 until 9 April 2028 and gives the exclusive
right for the Company to undertake exploration work within the granted area in
order to demonstrate the mineral potential.

 

The application for Kallak nr 102 was submitted on 19 January 2025 after the
Company was awarded an exemption from the customary one-year moratorium on
licence renewals following the termination or expiry of licences. This
exemption was granted in light of the Company's significant historical work
completed, the Kallak K nr 1 exploitation concession awarded to the north and
reasonable prospects for discovering additional iron ore.

 

The terms of Kallak nr 102 are standard for exploration permits with the
Company being required to submit a work plan prior to drilling and other
exploration activity, reaching agreements with landowners to undertake
activity and providing compensation for any impacts caused by this exploration
activity.

 

 

Figure 5. Exploration licence Kallak nr 102 with exploration licence Kallak nr
101 to the north and surrounding the Exploitation Concession Kallak K nr 1.

 

In conclusion

 

Kallak has been defined as Sweden's "largest undeveloped quartz banded iron
ore deposit" and "of national interest" by the Swedish Government in a
statement released on 18 January 2024. The project has the potential to
produce a high-grade, low impurity concentrate that will be an important
feedstock to support the decarbonisation of the steel industry. At the same
time, Kallak is surrounded by communities, culture, and nature that deserve
preservation. It is the Company's top priority to deliver a sustainable,
world-class project that delivers benefit to all stakeholders.

 

 

 

Enquiries:

Beowulf Mining plc

Ed Bowie, Chief Executive
Officer
ed.bowie@beowulfmining.com

 

SP Angel

(Nominated Adviser & Joint Broker)

Ewan Leggat / Stuart Gledhill / Adam Cowl           Tel: +44 (0) 20
3470 0470

 

Alternative Resource Capital

(Joint Broker)

Alex
Wood
Tel: +44 (0) 20 7186 9004

 

BlytheRay

Tim Blythe / Megan Ray
 
Tel: +44 (0) 20 7138 3204

 

 

 

About Beowulf Mining plc

 

Beowulf Mining is a mining company with main activities in exploration and
development in Sweden, Finland and Kosovo. Beowulf's portfolio is diversified
by commodity, geography and stage of development of the
projects and consists primarily of iron ore, graphite, gold and base metals.
Beowulf Mining is headquartered in London, England.

 

 

Cautionary Statement

 

Statements and assumptions made in this document with respect to the Company's
current plans, estimates, strategies and beliefs, and other statements that
are not historical facts, are forward-looking statements about the future
performance of Beowulf. Forward-looking statements include, but are not
limited to, those using words such as "may", "might", "seeks", "expects",
"anticipates", "estimates", "believes", "projects", "plans", strategy",
"forecast" and similar expressions. These statements reflect management's
expectations and assumptions in light of currently available information. They
are subject to a number of risks and uncertainties, including, but not limited
to , (i) changes in the economic, regulatory and political environments in the
countries where Beowulf operates; (ii) changes relating to the geological
information available in respect of the various projects undertaken; (iii)
Beowulf's continued ability to secure enough financing to carry on its
operations as a going concern; (iv) the success of its potential joint
ventures and alliances, if any; (v) metal prices, particularly as regards iron
ore. In the light of the many risks and uncertainties surrounding any mineral
project at an early stage of its development, the actual results could differ
materially from those presented and forecast in this document. Beowulf assumes
no unconditional obligation to immediately update any such statements and/or
forecast.

 

 

 1  (#_ftnref1) Mineral Resources were reported in 2021 (and re-stated as part
of the 2023 Scoping Study) by independent consultant Baker Geological Services
("BGS") and in accordance with the 2017 PERC reporting standard.

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